Power
Frightened Man
(CSA Images/Getty Images)

OpenAI’s internal Slack messages could cost it billions in copyright suit

Authors and publishers suing OpenAI over copyright infringement were granted access to internal OpenAI communications about the deletion of a pirated books dataset, and now want to review attorney communications.

Among the many copyright infringement cases that AI companies are defending themselves against, one piece of evidence keeps popping up: their use of pirated book databases like LibGen to train AI models.

The plaintiffs didn’t have to look far to discover this information, as early AI company research papers often freely mentioned the use of them. Since these research documents have been cited as evidence in lawsuits, AI companies have been far more cautious when they discuss the training materials used to build their models.

LibGen is again at the center of an AI copyright case, this time in a lawsuit filed by authors and publishers against OpenAI. Bloomberg Law reports that the plaintiffs got ahold of internal OpenAI emails and Slack messages that discussed deleting the LibGen data.

In an extraordinary move, the plaintiffs have asked the judge for access to the communications between OpenAI and its attorneys, by invoking a “crime-fraud” exemption to privilege. The plaintiffs want to know if the lawyers told OpenAI to delete the dataset, which could be construed as intentional destruction of evidence. As Bloomberg reported, if that is allowed, and shown to be the case, OpenAI could be exposed to charges of “willful infringement,” which could enhance penalties up to $150,000 per work, as well as steep sanctions from the court.

OpenAI pushed back on the allegations in a letter to the judge, adamantly denying that it had waived attorney-client privilege. In the letter, OpenAI’s attorneys wrote:

“OpenAI has consistently maintained that the reasons for the removal are privileged because they were legal decisions made in consultation with counsel. At no point has OpenAI disclosed or relied on the privileged reasons or retracted its position, and it has made clear that there are no non-privileged reasons.

After reviewing documents in private, US Magistrate Judge Ona Wang allowed some communications to be withheld, but ordered other messages to be produced. The case remains ongoing.

It’s not the first time that a Big Tech company’s internal communications surrounding its use of copyrighted material showed up as evidence in a lawsuit. According to messages revealed in discovery during a copyright case, Meta’s researchers expressed reservations about using LibGen, describing it as a “data set we know to be pirated.” Per the filings, the issue was escalated to “MZ,” who approved the pirated library’s use.

In June, a federal judge in the Northern District of California ruled that Anthropic did not violate the copyright of a group of authors when it used their works for training its Claude AI model — but only for the books that the company actually purchased, scanned, and ingested. The other works that Anthropic used to train its model from a pirated book dataset dubbed “The Pile” were found to not fall under “fair use” and called for a separate trial. In August, the company announced a $1.5 billion settlement with the authors that could end up costing it quite a bit more after class-action claims are calculated.

More Power

See all Power
power

OK, so when was the longest shutdown in US history?

The US government officially shut down at 12:01 a.m. on Wednesday after senators failed to agree on a last-minute funding bill. Though initially shrugging off the threat of a shutdown during yesterday’s session, stocks were mildly in the red on Wednesday as investors reacted to what is now the 11th shutdown in the government’s history.

Until this latest shutdown, there had been 20 government funding gaps experienced since 1976 — though not all ended in a full shutdown, with full closure averted in half of those cases.

Indeed, prior to the 1980s, funding gaps didn’t typically have major effects on government operations, with agencies continuing to operate on the basis that the funding would come eventually. However, a more stringent interpretation of the rules led to a stricter appropriations process from the early 1980s onward, with many subsequent funding gaps resulting in a shutdown of affected agencies (unless the gaps were quickly fixed or occurred over a weekend).

Obviously, the duration of the latest shutdown is still unclear, but it will continue until Congress passes a funding bill — most likely via a “continuing resolution,” which has ended every shutdown since 1990. Data analyzed by USAFacts suggest that it might not be a one- or two-day affair, as funding gaps have lengthened in recent years.

Government shutdown patterns
Sherwood News

Indeed, the last shutdown, which began in December 2018, ended up becoming the longest in history, at a whopping 34 days. By the time the government reopened in January 2019, about $3 billion (in 2019 dollars) had been wiped from the GDP in Q4, per data from the Congressional Budget Office, with approximately $18 billion in “federal discretionary spending” delayed over the roughly five-week stretch.

power

GM climbs following upgrade, report that Trump administration seeks stake in its lithium mine partner

Shares of General Motors rose more than 2% in premarket trading Wednesday following an upgrade of the stock by UBS from neutral to buy. The firm also hiked its price target for GM by 45% to $81.

Also likely elevating GM was a Reuters report that the Trump administration is exploring taking a 10% stake in Lithium Americas, the automaker’s partner in a yet to open Thacker Pass lithium mine. Shares of Lithium Americas surged 68% in the premarket.

GM, which invested $625 million into the lithium mine last year, holds a 38% stake in the joint venture. The mine is expected to become the Western Hemispheres primary lithium source in 2028, when it’s slated to open, producing enough of the metal to make 800,000 electric vehicle batteries.

Prior to its plans for Lithium Americas, the Trump administration last month said it would take a 10% stake in Intel. In July, it announced a 15% stake in rare earths miner MP Materials.

News Reporter 1970s

Jimmy Kimmel’s suspension highlights Nexstar and Sinclair’s vast control over US airwaves

Nexstar and Sinclair control large swaths of US television stations. Nexstar’s planned merger could make their influence even greater.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.